HB 16-1133, HOA Manager Professional
Responsibility and Disclosure, will be considered in the 2016 legislative
session. It will propose modifications
to the HOA Property Manager Licensing Bill and will again surface the obstructive
efforts by the Community Association Institute (CAI) in HOA and HOA Community
Association Manager (CAMs) Licensing reform: but we hope not. The Bill will also address problems with DORA
administering the law and developing effective CAM operating rules.
Up front in
this Bill: Adds no additional regulation
or government reporting requirements, no
new taxpayer contributions, no new fees or burdens to business, does not
preclude CAMs from charging any justified fee, and doesn’t interfere with CAM
or HOA operations.
In this
Bill: 1) direct and definitive
statements addressing requirements that CAMs comply with State HOA law and HOA governing
documents 2) defines requirements for
full disclosure of CAM fees and in particular for HOA Transfer Fees and
addresses the problems of excessive fees and duplicate (and triplicate)
charging for services already paid for with HOA dues 3) requires CAMs to provide a specifically
detailed hardcopy receipt to all payees
4) provides financial relief for the smallest HOA CAMs in reduced fees
and educational requirements but still requires they be licensed 6) requires DORA to provide improved transparency
and functionality on their web site concerning CAM information and violations.
Opposition from
the CAI is expected, again, in the form of empty and non-substantive arguments
(just statements and declarations) that contend no changes are needed and all the
issues in this proposal are already in the Bill (for whom?).
The CAI will
oppose requirements to justify the CAM HOA Transfer Fee and other CAM billings. This Bill doesn’t limit the amount of any fee
or preclude charging any fee but requires meaningfully explaining,
justifying, and receipting any fee. It
does begin to rein in the abusive Transfer Fee charged to sellers upon the sale
of a home. Specifically, what other
business can bill a home owner and not provide justification based on work
performed, not provide a detailed receipt, bill any amount with no
questions asked, leave the consumer with no means to contest the bill or its’
amount, no requirement to comply with State restrictions of billing under the
law, duplicate bill the home owner (and even triplicate) for services already
paid for with HOA dues, and if the home owner doesn’t pay can’t close on their
home? The answer is easy: NONE. The CAM licensing Bill was supposed to specifically
define requirements on justification, legality, and documentation and it did a
lame job at it ensuring this questionable CAM billing practices would continue. The transparency
and real disclosure in this Bill will not interfere with any collection of a
CAM fee as long as justified and legal.
The fight
for financial relief for small CAMs in this Bill was not supported by the CAI
in the last legislative session. The cost of a license for small CAMs can equal
a year’s income: it’s abusive and burdensome.
Previous misinformation spread was that the goal was to exempt small
CAMs from being licensed: not true, never in any proposal but believed by too
many. This Bill provides fairness and
relief to small business with reduced fees and educational requirements
commensurate with knowledge to legally and competently service small HOAs of 30
or less units. Educational providers are
able to offer small HOA CAM courses at a reduced cost. Costs for DORA to implement should be covered
in the same manner as completed when the total licensing law was implemented.
This Bill
also contains specifics on actions and requirements to comply with State
law and HOA governing documents that are now ambiguous in the law. Of importance is the requirement for a CAM to
notify the HOA Board if they are in non-compliance with the law, suggest a
corrective action, and if the Board continues their actions report the event to
DORA. This documents the event for
potential home owner action and also protects the CAM from a complaint that
they were complicit. Will the CAI object
to clarification on this issue to make accountability better defined?
HB 16-1133
simply makes the licensing law effective for home owners with no new burdens on
business. It defines accountability,
transparency, and fairness that are lacking in the law and required for
enforcement. The objections to
improvements in CAM licensing through this Bill will become the CAI’s latest whack-a-mole
game in which they float empty and
deflective arguments to slam down any initiative that pops up for real HOA
reform and CAM accountability.
Note: the
CAI is an organization representing CAMs and HOA legal interests which comprise
their membership.
